Competition in furniture stores is becoming more and more fierce

Looking back on 2011, under the background of unprecedentedly strict property market regulation, along with the increasingly fierce market competition, Sichuan's home stores and handicraft market have undergone dramatic changes. We see that some stores are unable to support and will soon exit the market. At the same time, some home furnishing stores continued to hold high the banner of expansion and quickly ran horses to encircle the enclosure. Survival of the fittest is an ever-changing law, especially in the overall sluggish market environment in the first half of the year. Many home stores seem to be somewhat difficult to manage. Even on the road of expansion, they will inevitably encounter "accidents."

Store competition is becoming fiercer

In recent years, the expansion of home stores has gradually increased. Even in the harsh first half of 2011, home stores based on rental income continued the expansion winds that had been blown up last year. Is this due to market demand? In fact, there are already oversupply situations in Sichuan's home furnishing stores. At the 2011 annual meeting of the Sichuan Furniture Industry Association, several big store giants from Chengdu said that under the circumstances of limited market demand, some stores are still expanding in a "horse race" style, intended to establish channel advantages , The layout of the country; there are some new stores that are rising rapidly, intended to master the circulation link and control channels. These two factors have led to home furnishing stores "flowering everywhere" and grabbing a limited market share. The competition is so fierce that it is destined to eliminate a group of poorly operating stores.

Open independent store

"Instead of complaining about the hypermarket expansion and the pressure of rising rents, it is better to open an independent store", said Liu Chenbin, general manager of Sichuan Jumin Gendiao. He told the author that the rental cost of opening a 500-square-meter store in the hypermarket is enough to open an independent store of 2,000 square meters. In Chengdu, the Root Sculpture Cultural Concept Museum of Jumin Root Sculpture, Palm Pearl Golden Sands Fashion Concept Museum, Yudaiqiao Red Apple Store, Quanyou Furniture Store in Guancheng Square and Jialing Road Qumei Store all "take the mountain as king", no longer Stationed in hypermarkets. The common points of several large panel furniture companies 'independent stores are: they have been enriched and optimized in products to meet customers' one-stop shopping needs.

The Jumin Root Carving Cultural Concept Hall is divided into two layers: the first floor combines bowling alleys to launch the works of representative root carving masters; the second floor combines high-end tea houses with tea tables and tea tray root carvings. Pocket Pearl Sands Fashion Concept Museum has a total area of ​​more than 5,000 square meters. The upper and lower floors are all independent stores. The first floor is Palm Pearl's soft furniture sales area, and the second floor and above are all panel furniture areas. Meijia Home Furnishing Co., Ltd. in Guancheng Square has an area of ​​20,000 square meters, mainly engaged in all-you furniture, supplemented by middle-high-end furniture products of more than a dozen other brands.

In several more professional root carving stores in Chengdu, some root carving enterprises in the store began to move to open stores near the store. Most of the root carving enterprises in Chengdu started as independent stores. They have only tried to enter the store in the past two years, and now they have begun to withdraw from the store and redeveloped the independent store.

Test water e-commerce

From a cost perspective, the most competitive is e-commerce.

Qumei Furniture is the first home furnishing enterprise involved in the field of e-commerce. Last year, it achieved a leading position in the field of home e-commerce with RMB 80 million in sales. Later, various sales methods were adopted, such as "mini group", "low-carbon group", "horny group", "hug group heating group", etc., all achieved good results. Many consumers have already approved this online shopping model of Qumei Furniture. They often buy Qumei furniture not from Qumei's physical stores, but to Taobao or Qumei Mall.

With the enlightenment of Qumei, many root carving brands began to enter the field of e-commerce, such as nature root carving, Liangmu edge root carving, Jumin root carving, etc. have all settled in Taobao mall, and opened an independent online store. During the peak shopping season of the Spring Festival, various brands have joined hands to participate in major promotional activities. Cai Wenhua, president of the Chengdu Gendiao Artists Association, said that the Spring Festival root carving gifts are very popular, and companies have given more discounts than before.

In the case of a flood of stores, instead of expecting the stores to make a little profit for the brand, it is better to actively respond and think about any breakthroughs in channel innovation. Over time, independent stores and e-commerce will become the biggest challengers in hypermarkets, and industry reshuffle will arrive early.

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